"Over recent decades ordinary homeowners have increasingly been charged high and escalating amounts of ground rent, leaving them in financial distress and often unable to sell or re-mortgage their homes. Labour made a promise to leaseholders that we would fix this injustice, but ministers are currently subjected to furious lobbying from wealthy investors trying to water this manifesto commitment down."
"There are those who argue we cannot act on our promise as it could risk a backlash from investors, including pension funds. It's hardly surprising the system works just fine for them. They get an annual return for doing absolutely nothing, they can raise ground rents and pile up service charges without transparency and with total impunity, regardless of the devastation it causes to families."
Keir Starmer must decide whether to enforce a manifesto pledge to cap annual ground rents for existing leaseholders in England and Wales amid cabinet divisions. Steve Reed supports the cap while Rachel Reeves has expressed concern that capping rents could deter property investors. Angela Rayner urged ministers to uphold the commitment and warned of wealthy investor lobbying aiming to weaken the measure. The draft leasehold bill was delayed after Reeves raised concerns. Labour pledged to end the leasehold sale of new flats and tackle unregulated, unaffordable ground rents. Pressure from MPs and ministers continues as a decision is expected imminently.
Read at www.theguardian.com
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